Carr’s Group, the agriculture, food and engineering business, has issued a trading update for the year ending 3 September 2016, with performance in line with the board’s expectations.
The company said its food division had performed well, with underlying volumes 1.6% ahead of last year for the 20 weeks to 19 July 2016.
It noted: “While there has been significant volatility in the wheat market in the period, Carr’s approach to risk management, which seeks to match sales contracts with raw material commitments, serves to minimise the impact of that volatility.”
The food division’s performance allows for an insurance claim relating to the December 2015 flooding in northern England, which is expected to be successful.
Tim Davies, chief executive at Carr’s, commented: “The group continues to operate in difficult and challenging markets and this has inevitably been exacerbated by the uncertainty triggered by the result of the recent EU referendum. However, the board remains confident that it is well-placed to respond to these challenges, and to take advantages of any opportunities that may arise from the changing markets.”
The group expects to issue preliminary results for the year ending 3 September 2016 on 14 November.
Earlier this year, Carr’s acknowledged a “significant operational impact” from the December 2015 floods on its Lancaster feed mill and a major customer of its Cumbrian flour mill.